International Journal of Economics and Business Research (23 papers in press)

Regular Issues

• Exploring UAE’s female leadership styles in the digital era: Motivators and barriers  
  by Wejdan Farhan, Iffat Chaudhry, Jamil Razmak, Ghaleb A. El Refae 
  Abstract: Womens participation in decision-making roles is increasing in the patriarchal society of the UAE. An empirical investigation has been undertaken to determine the differences in leadership styles adopted by women compared with those adopted by men in both the public and private sectors of the UAE, as well as the motivators and barriers faced by women in their leadership roles. A mixed-method approach survey and interviews was used to collect data from leaders working in various government organisations and private businesses. Responses from 409 surveys and 24 interviews were analysed using SPSS and thematic analysis, respectively, to test the study hypotheses. The survey found that women leaders mostly adopt a transformational leadership style along with a contingent reward strategy (transactional) to lead employees at their respective workplaces. They mostly avoid a passive approach to leadership compared with their male counterparts. Interviews with female leaders identified how self-development, social impact, and collaborations motivate them, and how a lack of authority, vigilance, and gender stereotypes inhibit them in their leadership roles. The study results have implications for industrial practitioners as well as policy-makers in the UAE Government departments concerned with womens empowerment.
  Keywords: female leaders; female empowerment; transactional; transformational; laissez-faire; barriers; United Arab Emirates; UAE.
  DOI: 10.1504/IJEBR.2023.10045852
   
  
• The impact of Economic Policy Uncertainty on the real exchange rate: Evidence from the UK  
  by Paula Moldovan, Sérgio Lagoa, Diana Mendes 
  Abstract: The world economy has been punctuated by uncertainty in recent years, as a result of the 2008 subprime crisis, the European sovereign debt crisis, Brexit, and the 2016 US presidential elections, to mention but a few of the reasons. This study explores how the UK real exchange rate reacts to economic policy uncertainty (EPU) shocks using monthly data for the period 1998 to 2020. We contribute to the literature by identifying the long-run and short-run impacts of EPU using a cointegrated ARDL model, and by studying a country that has been through periods of both relatively low and high uncertainty. Results confirm that EPU has an important effect in the long run by depreciating the exchange rate. In addition to urging policymakers and regulators to keep policy uncertainty to a minimum as a way of sustaining exchange rate stability and thus promoting long-term economic growth, further evidence is provided on exchange rate fundamentals.
  Keywords: real exchange rate; economic policy uncertainty; EPU; ARDL model; Brexit; UK.
  DOI: 10.1504/IJEBR.2023.10046502
   
  
• PERFORMANCE EXPECTANCY OF GENERALIZED AUDIT SOFTWARE: A DEVELOPING COUNTRY PERSPECTIVE  
  by Rindang Widuri  
  Abstract: This study investigates the perceived benefits to Indonesian audit firms using generalised audit software (GAS). This study’s results are based on semi-structured in-depth interviews with external auditors from firms of all sizes. The finding of this research shows that the GAS utilisation affects the competitiveness, improves efficiency, increases audit quality, productivity, and uniformity as the performance of GAS usage shown from several interviewed participants involved in this study. This study contributes to providing insights into GAS usage’s perceived benefits in the external audit setting in firms of all sizes in a developing economy context.
  Keywords: audit software; generalised audit software; GAS; use; audit quality; Indonesia; computer-assisted audit techniques; CAATs; audit technology; external auditor.
  DOI: 10.1504/IJEBR.2023.10046703
   
  
• The Impact of Investor Sentiments on Stock Returns and Volatility: Do Economic Forces and Herding Behavior Matter  
  by Sana Masood, Umar Farooq, Mosab Tabash, Suhaib Anagreh 
  Abstract: This study examines the relationship between investor sentiments, stock returns and stock volatility. Herding behaviour and macroeconomic forces are also used as explanatory variables in this study. Stock returns and stock volatility are used as dependent variables. The main objective of this research is to examine the impact of investor sentiments, macroeconomic forces, and herding behaviour on stock returns and stock volatility. The data of the non-financial sector of Pakistan has been collected from 2010 to 2019. Panel quantile regression has been used for determining the relationship among dependent and independent variables of the study. Different quantiles i.e., 0.25, 0.50 and 0.75 are used for desired results. Results of this study suggest that investor sentiments affect stock returns and stock volatility at different quantiles. Macroeconomic forces also affect stock returns and volatility at different quantiles. This research will aid managers, and policymakers in future investments.
  Keywords: investor sentiments; macroeconomic forces; stock volatility; stock returns and herding.
  DOI: 10.1504/IJEBR.2023.10047239
   
  
• The impact of organisational structures on management compensation packages and investment decisions - a principal-agent approach investigating formula apportionment and separate accounting  
  by Hülya Çelebi 
  Abstract: This study investigates managerial effort choices, compensation and investment decisions by differentiating between: 1) centralised and decentralised organisational structures; 2) corporate income taxation schemes [separate accounting and formula apportionment (FA)]; 3) different FA schemes, which has not been undertaken hitherto. A principal-agent approach of a LEN model is applied within the framework of a multijurisdictional entity. The outcomes reveal the neutral impact of separate accounting on investment decisions, agents’ efforts and compensation packages under both organisational structures, whereas investment decisions under centralised structures and management compensation packages (under both organisational structures) show distortions caused by FA. The extent of these distortions depends on the apportionment factors used and organisational structures. Interestingly, the Massachusetts formula signals that the formula allocation factors used not only distort firm-internal contracts on management compensation packages, but can also affect the extent of decisions delegated.
  Keywords: organisational structures; principal-agent theory; formula apportionment; investment; nonlinear programming.
  DOI: 10.1504/IJEBR.2022.10047528
   
  
• Decision-Making Modes and Decision-Making Biases. Improving decisions in escalation of commitment situations by triggering considerations  
  by Peter Kotzian 
  Abstract: Escalation of commitment is a persistent problem in managerial decision-making. Purpose of this study is an experimental test of an alternative debiasing strategy with regard to the continuation of failing, but also of successful projects. According to the dual processing approach to decision-making, biases are linked to operating in a spontaneous low-effort cognitive mode. Thus, one remedy is getting decision makers to shift in an elaborate mode of thinking. This experimental study investigated, whether calling for an explicit evaluation of benefits and risks before actors make their decision improves decision-making about a project’s continuation in the sense that sunk costs are less relevant and available economic information is more relevant for the decision. Effects of triggering considered decision-making on successful and unsuccessful projects are investigated. The findings indicate substantial differences between considered and spontaneous decisions with decision makers actively considering projects before deciding actually making worse decisions.
  Keywords: decision making; escalation of commitment; sunk cost bias; dual processing approach; system 1; system 2; decision quality; information usage; debiasing.
  DOI: 10.1504/IJEBR.2023.10048358
   
  
• The Impact of Corporate Social Responsibility on Corporate Financial Performance in India: An Investigation using Data Envelopment Analysis
  by Dipanita Deb, Philippe Gillet, ANUPAM DE 
  Abstract: The paper emphasised the technical efficiency of Indian corporates and explored the drivers of high efficiency. This study applies multiple methods, i.e., data envelopment analysis and free disposal hull, to observe the efficiency rankings of the Indian companies. In the second stage, we perform a truncated regression analysis to validate our results on the association between corporate social responsibility and corporate financial performance. The findings suggest that 20 corporates from 87 corporates are technical efficient (TE = 1) in all frontier approaches. Further, it has been observed that the three pillars of corporate social responsibility (i.e., environment, social, and governance) positively correlate with efficiency. Furthermore, it has also been observed that all three pillars of corporate social responsibility are positively related to return on assets. The findings can be helpful for the stakeholders, policymakers, and management as a guideline for implementing corporate social responsibility practices.
  Keywords: corporate social responsibility; CSR; environment; social; governance; ESG; financial performance; India.
  
  
• Attitudes toward social and environmental scoring system: Analysis of normative framing and individual influencing factors  
  by Dominik Ahrari, Augustin Suessmair 
  Abstract: Scoring systems do not only aim to assess individuals' social and environmental behaviour and predict their future behaviours, but also motivate people to engage in score-improving behaviours. This study aims to assess people's attitudes towards exemplary environmental and social scoring systems and investigate the extent individual factors and normative 'emphasise' framing affect people's attitudes towards environmental and social scoring systems. A quantitative online study was conducted in Germany with 237 respondents. Fictitious scenarios from scoring practice were used as attitude objects. The results show that environmental scoring was evaluated significantly more positively than social scoring by the study participants. The results also indicate that individual factors influence attitude formation. The results suggest that the individual utility of the respective scores could influence the acceptance of environmental and social scoring systems. Normative 'emphasise' framing and the personality trait of narcissism do not seem to be relevant influencing factors.
  Keywords: environmental score; social score; consumer behaviour; sustainability; governance; public management.
  DOI: 10.1504/IJEBR.2024.10055042
   
  
• Which nudges get support - A Quantitative Analysis of the Dimensions Transparency and Dual Process Theory  
  by Hannes Wissmann, Augustin Suessmair 
  Abstract: Policymakers have been increasingly interested in so-called 'nudges' which are behaviourally informed policy measures. The legitimacy and acceptability of nudging is controversially debated. In this paper, the acceptability of nudges was examined by the framework of Hansen and Jespersen (2013), which classifies nudges into four types by distinguishing on a dual process theory dimension and on an epistemic transparency dimension. An online questionnaire was developed in which 135 participants stated their support for the different types of nudges applied in the areas of health and sustainability. It was hypothesised that for both and across areas, the support would decrease in the following order: transparent system 2, transparent system 1, non-transparent system 1, and non-transparent system 2 nudges. The hypotheses could be confirmed for sustainability nudges and across application areas. Further analysis indicated that lower education, higher income, and higher environmental awareness are positively correlated with acceptance of sustainability nudges.
  Keywords: nudging; public policy; behaviour change; sustainability; health; behavioural experiment.
  DOI: 10.1504/IJEBR.2024.10055044
   
  
• Discrimination at work: Effects on Job Satisfaction and Organizational Commitment. An empirical study of the influence of perceived discrimination on work-related behaviours among people with and without a migration background  
  by Muhammed-Talha Topcu, Augustin Suessmair 
  Abstract: People with a migrant background constitute a significant part of German population. Their perceived discrimination at workplace is under-researched. This paper addresses the social factors, focusing on the perceived discrimination against migrants and persons in next generations with a migration background in Germany and supplements the rich body of literature on the economic aspects of immigration, e.g., Bhagwati and Srinivasan (1983), Borjas (1995), West (2011), and Bansak et al. (2015). An online survey with 239 participants was conducted. Results show that people with a migration background experience more discrimination than people without a migration background. However, people with a migration background are not per se less satisfied at work or less committed to their organisation. In addition, discrimination was found to predict lower job satisfaction and lower organisational commitment. Migration background is moderating the effect, while this was absent for job satisfaction. Further exploratory analyses show a significant mediation of the effect of migration background on job satisfaction through perceived discrimination.
  Keywords: Discrimination; workplace; migration background; Germany; job satisfaction; organizational commitment.
  DOI: 10.1504/IJEBR.2024.10055096
   
  
• The Impact of Technology on Economic Growth in Turkey
  by Merve Ercan, Dilek Temiz, Aytaç Gökmen 
  Abstract: The Turkish economy has been suffering from trade imbalance for a long time. Exporting high value-added products will diminish Turkey's dependence on foreign resources for capital and imported products. At the same time, it may be possible to divert more resources from gross domestic product (GDP) to R&D funds. Appropriate and efficient usage of technology will help companies innovate and find new areas of employment. As a result, the Turkish economy may have a better chance of obtaining a sustainable economic growth for the longer term. This study concludes that increased R&D expenditures leads to a rise in technology and this in turn contributes positively to economic growth. The results obtained from the study show that technology affects Turkey's economic growth. Therefore, Turkey needs to work harder in the field of technology in order to achieve sustainable growth. Improving the situation and quality of research and development activities in Turkey, encouraging research and development investments by both the government and the business sector should be priority reform movements for Turkey. Policy makers should support science and technology, make institutional arrangements for intellectual property rights and raise the level of education, and make arrangements to increase R&D spending.
  Keywords: Technology; Total R&D Expenditure; Economic Growth; Endogenous Growth Models; Turkey.
  DOI: 10.1504/IJEBR.2025.10059137
   
  
• Fundamental Breach of execution of the Off-plan Sale Contract According to Law No. (3) of 2015 concerning the regulation of the real estate sector in the Emirate of Abu Dhabi - A Comparative study
  by Ali Hadi Al-Obeidi  
  Abstract: Contrary to the general rules established in the UAE's Civil Transactions Law, Article (17-1) of Abu Dhabi's real estate sector law, stipulates: either party can end the contract under a unilateral will without referring to the judiciary if there is a fundamental breach of the contract by the other party. Since the UAE legislation is devoid of any statement in this regard, the International Sale Contract Rules were used. Specifically, Article (25) of the United Nations Convention on the International Sale of Goods (Vienna 1980) and English Law. To achieve this purpose an analytical approach towards Article (17) was implemented, and the Article compared to the international sales texts. This research’s Crucial findings are the precise definition of a contract's fundamental breach, and the specific conditions required to fulfill this breach. This study contributes to existing research by recommending specific amendments on Article (17-1) and Article (25) Vienna Convention.
  Keywords: Fundamental breach; Real estate sector; Abu Dhabi Law; The United Nations Convention on Contracts for International Sale of Goods; Vienna 1980; English Law; off-plan sale.
  DOI: 10.1504/IJEBR.2025.10059535
   
  
• The impact of financial systems on economic growth under conditions of globalisation  
  by Ksenija Kravec, Daiva Jureviciene 
  Abstract: Researchers have noticed that economic growth is faster in certain countries than in others, and the development of the existing domestic financial sector is uneven. That is why it is essential not only to determine the relationship between financial sector indicators and economic growth but also to analyse the impact of the financial sector in different groups of countries with economic growth rates. The work aims to assess the influence of individual countries’ financial systems (banks, financial markets) on economic growth. Borrowing and equity trading have been found to positively influence economic growth, while the market capitalisation of companies has been found to harm economic growth. The results can be used to develop growth plans for financial institutions that promote economic development.
  Keywords: financial system; banks; financial markets; economic growth; globalisation; stability.
  DOI: 10.1504/IJEBR.2025.10063602
   
  
• Export pricing strategies for firm-specific exchange rate shocks: pass on the cost, or swallow the bitter pill?  
  by Weixiao Wu 
  Abstract: Earlier literature states that during currency appreciation, exchange rate shocks will either be passed on to final export prices (exchange rate pass-through ERPT) or be absorbed by producers via lower production markups (pricing-to-market PTM). We construct an innovative model to examine how import intensity interacts with these channels and reduces the extent to which exchange rate shocks are passed on to the final prices. Using comprehensive Chinese firm-level export markup and firm-specific effective real exchange rate data, we find a lower ERPT after considering import intensity effects. This result indicates that the use of more foreign inputs does help to mitigate the increase in export price. We further compare different trade types. Evidence shows that processing firms have much smaller ERPT because they lower their markup to absorb the exchange rate cost during currency appreciation rather than passing such costs to end buyers. Moreover, being heavily reliant on imported intermediate inputs, processing firms can benefit from the lower cost of foreign inputs and further reduce their ERPT during currency appreciation.
  Keywords: exchange rage pass-through; pricing-to-market; PTM; firm-specific exchange rate; import intensity; markup; processing and ordinary trade.
  DOI: 10.1504/IJEBR.2025.10066662
   
  

Special Issue on: Contemporary Issues in Economics and Financial Engineering

• How the COVID-19 pandemic affected the investment characteristics of Indonesian government bond market?  
  by Alexander Ganchev 
  Abstract: The research paper investigates the investment characteristics of the Indonesian government bond market during the COVID-19 pandemic. The study reveals that for the investigated period the yield on Indonesian government bonds has many of the well-studied characteristics that are present in the developed debt markets. However, in this case there are some specifics, such as a strong correlation along the entire yield curve and inhomogeneous volatility of medium-term yields. The empirical findings also show that for the study period some of the medium-term Indonesian government bonds are systematically incorrectly priced. Despite this fact the Indonesian government bonds as a whole are very good investment in the COVID-19 environment because they offer stable and relatively high yield. Moreover, due to the characteristics of the yield curve dynamics, the portfolios of Indonesian government bonds could easily be hedged against interest rate risk by using simple tools such as duration or modified duration.
  Keywords: fixed-income securities; bond yield; yield to maturity yield curve; Indonesian debt market; COVID-19.
  DOI: 10.1504/IJEBR.2024.10052266
   
  
• Two-speed or three-speed recovery in post-crisis and post-pandemic economy: regional and sectoral development  
  by Astra Auzina-Emsina, Velga Ozolina 
  Abstract: Balanced recovery is a key factor to ensure the sustainable economic performance in the post-crisis period. Two-speed recovery pattern is already observed. Three-speed recovery represents the most likely pattern of recovery in the majority of the EU countries in the post-COVID era due to the common dramatic decline in transport and tourism, relative minor impact on large part of essential manufacturing and services, moderate impact on other industries that adopted online and distant-working solutions. It is believed that air transport recovers quickly, minor increase can be foreseen in boomed courier and postal sector, and stability in other transport industries. The findings argue that urban areas are shocked more as modelled transportation sector’s development scenarios reveal faster recovery in urban (especially in metropolitan) regions compared to rural areas. Obtained results are valuable for policy makers and government for modifying the recovery plans to stimulate balanced recovery, reducing potential poverty risks and depressed regions.
  Keywords: recovery; two-speed economy; three-speed economy; post-crisis; post-COVID; post-pandemic economy; economic modelling; input-output.
  DOI: 10.1504/IJEBR.2025.10063545
   
  
• Variables of the Harberger Triangle in the Financial Market  
  by Kristaps Freimanis, Maija Senfelde 
  Abstract: If there are no market failures, perfectly competitive markets will provide an accurate assessment of the risk/return profile of each financial instrument. Thereby identification of the financial market failures is important task to properly address the regulation aimed to minimize the deadweight loss arising from the market failures. In this paper authors review scientific literature and the speeches of the European Central Bank to reveal up-to-date financial market failures and propose variables to be used in the Harberger Triangle for deadweight loss assessment arising from market failures. Proposed variables cover insights revealed in the literature and central bank speeches’ analysis and are broadly available in most of the statistical databases, specialized databases or in the financial statements of banks.
  Keywords: central bank speeches; deadweight loss; the Harberger Triangle; market failures.
  DOI: 10.1504/IJEBR.2024.10054249
   
  
• Georgian labour market in gender prism: a statistical review  
  by Nino Abesadze, Nino Paresashvili, Rusudan Kinkladze, Ketevan Chitaladze 
  Abstract: It is true that there is a reduction of gender imbalance in the Georgian labour market, but the challenges in this area are still serious. The aim of the research was to discuss the peculiarities of the Georgian labour market in terms of gender, identify its main problems, conduct quantitative analysis using statistical methods and draw relevant conclusions. Both general and statistical, specific: statistical observation, grouping and analysis methods were used in the research. Gender imbalances in the Georgian labour market are decreasing. In the conditions of increased unemployment and reduced economic activity, it is noteworthy that the employment rates of women are increasing; As women’s employment increases, so do their wages, but its magnitude is still significantly lower than that of men; Employment imbalances are pronounced in the territorial context, the difference is more pronounced in cities than in rural areas.
  Keywords: employment; labour market; Georgia.
  DOI: 10.1504/IJEBR.2024.10054928
   
  
• A new measure of price sensitivity to interest rate changes  
  by Bohumil Stádník 
  Abstract: Macaulay's duration is a quantification of the sensitivity of the bond price to a change of its yield to maturity (YTM). Its main imperfection is that the change of YTM is very difficult to predict. To predict it correctly we would have to correctly predict the change of the entire shape of the zero-coupon curve. As we believe that predicting a shift of its short rate is easier than predicting the way the entire yield curve will be reshaped, we decided to quantify the sensitivity of the bond price with respect to the change of the short rate. Thus, the methodology is based on empirical quantification of the reshaping of the whole zero-coupon curve with respect to the change of its short rate, and based on such a quantification, we may then calculate the change of the bond price. The proposed measure is referred to as “short rate shift duration”.
  Keywords: Short rate shift duration; SRS duration; Macaulay’s duration; interest rate sensitivity; zero-coupon yield curve reshaping.
  DOI: 10.1504/IJEBR.2024.10055098
   
  
• Maturity or readiness? How to measure the levels of digitalisation? The case of Tâmega e Sousa Region  
  by Nelson Duarte, Carla Pereira, Davide Carneiro 
  Abstract: Digitalisation is mandatory for todays companies. Living in the Era of Industry 4.0, the phenomenon of digital transformation cannot be ignored. Intending to support manufacturing companies in their digitalisation processes, the present paper reflects the work that has been carried on, to support the digital transition for manufacturing companies in the region of Tâmega e Sousa. This region is considered to be an industrial region located in the North of Portugal, but lagging in terms of digital technology adoption. In a theoretical framework, it is expected to identify the most relevant factors to promote a successful digital strategy. Supported by a Science Design methodology, a platform was developed to support the measurement of the maturity or digital companies readiness levels. To collect the necessary data were performed questionnaires. First, in a face-to-face approach and later through the platform developed. The (preliminary) results are based on a sample of 53 companies (pilot test). From this data, it was possible to identify some trends: 1) some behaviours indicate that the region is still in the digitisation phase; 2) the digitisation focus is in the processes dimension; 3) even performing a digital transition, companies do not invest in in-house IT solutions.
  Keywords: digital maturity; readiness; digital transformation; digital industry survey; SME; Tââmega e Sousa.
  DOI: 10.1504/IJEBR.2024.10055535
   
  
• Digitalisation of the economies of the Baltic States: Forecasting some development trends  
  by Inna Stecenko, Yulia Stukalina 
  Abstract: The pace of business digital transformation varies across the countries, which is determined by a few conditional factors that work differently in different countries depending on the country’s context. The aim of the research was to forecast the number of R&D specialists in the Baltic States and the number of internet-banking operations in five years to come for further forecasting the speed of digitalisation in the country based on the results of the previous study dedicated to the assessment of the factors influencing the digitalisation of economies in the Baltic States. For this purpose, a predictive analysis for forecasting the number of R&D staff and internet-banking operations in the Baltic States was done by performing multiple regression analysis (for the period from 2022 to 2028). The findings of the study are supposed to be utilised for the development of a policy for accelerating digitalisation of the economies of the Baltic States.
  Keywords: data-driven economy; digitalisation; Baltic States.
  DOI: 10.1504/IJEBR.2024.10056286
   
  
• Theoretical and empirical analysis of human capital in the context of the Polish labour market condition  
  by Katarzyna Brozek, Beata Poteralska, Joanna Labedzka 
  Abstract: The aim of the article was to identify statistically significant determinants of human capital influencing the condition of the labour market in Poland. The resources of public statistics were used to collect the empirical data. The collected data was developed using the technique of estimating the structural parameters of the regression function using the classical method of least squares (LSM). Due to the diversity of human capital factors, four thematic areas were identified, defined by 11 predictors describing the attributes of human capital. All the variables turned out to be statistically significant and had a positive effect on the improvement of the labour market condition in Poland, measured by the unemployment rate. The practical implication of the study was to obtain information about the significance level of the studied variables. This allowed us to conclude which attributes of human capital have the greatest impact on the situation on the labour market.
  Keywords: human resource management; labour market; statistical and econometric analysis; Polish economy.
  DOI: 10.1504/IJEBR.2024.10058300
   
  
• Empirical study of risk management in the innovation activity of the enterprises of the chemical industry in Bulgaria  
  by Milena Kirova, Ivelina Lyubenova 
  Abstract: The research goal of this article is to identify the risks in Bulgarian chemical industry that most need to be managed according to the chosen innovation management approach. The authors have set the following tasks: to make critical literature review about innovation management approaches and risk management in innovation activities; to conduct own empirical study using questionnaire for expert assessments and to systematise and analyse the results from the survey by using average scoring, grouping, structuring the results. The main results are: the main types of innovations produced and the two most used innovation management approaches in Bulgarian chemical companies; detailed assessment of likelihood and impact of innovation risks; relationship between innovation management approaches and risks and identifying a list of risks that most need to be managed in accordance with the chosen innovation management approach. Finally, the paper presents a proposal for risk response according to innovation management approach.
  Keywords: risk management; innovation risks; innovation management approaches; chemical industry.
  DOI: 10.1504/IJEBR.2024.10061203